John Smith, a successful carpenter and sole trader, had run his business for 15 years with the help of his loyal apprentice, Mark Jones. John often told Mark he intended to leave the business to him one day.
But John never put those wishes in writing. His will left everything to his elderly parents, and he didn’t include provisions regarding his business assets. When John died suddenly, the consequences were devastating.
Because John did not provide any specific provision for his business in his will, his verbal promises to Mark had no legal standing. The business assets, workshop, tools, and client list went straight to John’s parents under the will.
With no knowledge of the trade, they sold the assets. The business was liquidated, the goodwill disappeared, and Mark lost both his livelihood and 15 years of work.
John should have included a specific clause in his will, leaving the business to Mark. This would have:
Intent isn’t enough; only a legally binding contract will protect your business. A sole trader’s will should include specific provisions for the business to ensure it passes to the right individual(s) and avoids being dismantled.
Protect Your Legacy Today
No matter what you’ve promised, without the right legal planning, your business could end up in the wrong hands or be lost entirely. At Hedges Law, we make writing your business will simple, clear, and tailored to protect your hard work, your team, and your legacy.
1 min read
Shivani Karara
